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01/11 11:27
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects a positive outlook with strong financial performance, including 4% revenue growth and a 15% EPS increase. The acquisition of MoneyLion and strategic expansions in cyber safety and identity offerings contribute to optimism. Although there are integration risks and macroeconomic concerns, the company's resilience and strong cash flow provide stability. The Q&A highlights confidence in durable demand and strategic market approaches. The shareholder return plan, with substantial dividends and share repurchases, further bolsters sentiment. Overall, the comprehensive growth and strategic initiatives suggest a positive stock price movement.
Total Bookings $4 billion, up 4% year-over-year, driven by broad-based growth across core cyber safety offerings.
Total Revenue $3.935 billion, up 4% year-over-year, reflecting strong performance across the product portfolio.
Non-GAAP Operating Margin 58.4%, reflecting strong cost control and operational efficiencies.
Non-GAAP EPS $2.22, up 15% year-over-year, at the high end of annual guidance.
Unlevered Free Cash Flow Nearly $2 billion, indicating strong cash generation capabilities.
Net Leverage 3.2x EBITDA, reduced from previous levels, indicating improved financial health.
Interest Expense Approximately $129 million in Q4.
Direct Revenue $877 million, up 4% year-over-year, driven by customer acquisition and retention.
Partner Revenue $121 million, up 15% year-over-year, driven by growth in employee benefits channel.
Q4 Operating Income $590 million, translating to an operating margin of 58.4%.
Q4 Net Income $366 million, up 10% year-over-year.
Diluted EPS for Q4 $0.59, up 12% year-over-year.
Q4 Operating Cash Flow $473 million.
Free Cash Flow for Q4 $470 million.
Ending Cash Balance Just over $1 billion, with over $2.5 billion of liquidity.
Share Repurchases $1.6 billion since the start of fiscal year 2023.
Quarterly Dividend $77 million paid in Q4, with a regular quarterly dividend of 12.5 cents per share.
New Product Launch: Launched Genie Scam Protection in Northern Cyber Safety products to defend against phony calls, texts, emails, or websites, significantly boosting scam detection efficacy.
Product Enhancement: Enhanced AI-driven threat detection capabilities across all Gen brands, developing new engines for additional channels like SMS and emails.
Identity Theft Protection: Increased demand for LifeLock following major data breaches, enhancing offerings with credit score insights and proactive security updates.
Market Expansion: Introduced Privacy and Identity products into 15 new markets with encouraging early results, and expanded share in Latin America and emerging markets.
Customer Growth: Grew direct customer count by 1.3 million to over 40 million direct paid customers, with a total of over 65 million direct and indirect paid customers.
Operational Efficiency: Achieved a record non-GAAP operating margin of 58.4%, reflecting strong cost control and operational efficiencies.
Cash Flow Generation: Generated nearly $2 billion in unlevered free cash flow, maintaining a robust financial position.
Strategic Acquisition: Acquired MoneyLion to expand into financial wellness, integrating its capabilities into LifeLock and Northern Financial Wellness features.
Business Segmentation: Organizing business into two segments: Cyber Safety Platform and Trust-Based Solutions to enhance focus and resource allocation.
Competitive Pressures: The consumer cyber safety landscape is evolving with AI-powered threats becoming increasingly sophisticated, leading to a need for advanced technologies to combat these threats. This competitive pressure necessitates continuous innovation and adaptation to maintain market leadership.
Regulatory Issues: The company must navigate regulatory challenges related to data privacy and security, especially as consumer awareness increases following major data breaches. This could impact operational strategies and compliance costs.
Supply Chain Challenges: The evolving threat landscape, including ransomware attacks and AI-driven scams, poses challenges in ensuring the security and reliability of the company's offerings, which could affect customer trust and retention.
Economic Factors: General macroeconomic uncertainty may impact consumer spending on cyber safety solutions, although the company remains resilient due to a recurring revenue base and strong customer retention.
Integration Risks: The recent acquisition of MoneyLion introduces integration risks, including aligning operational practices and achieving targeted operational synergies, which are crucial for realizing the anticipated growth in the financial wellness market.
Total Bookings: Total bookings was a record $4 billion, up 4% year-over-year.
Non-GAAP Operating Margin: Record non-GAAP operating margin of 58.4%.
Customer Growth: Grew direct customer count by 1.3 million to over 40 million direct paid customers.
Acquisition of MoneyLion: Acquisition of MoneyLion expands TAM and accelerates entry into financial wellness market.
AI-Driven Solutions: Enhanced AI-driven threat detection capabilities and launched Genie Scam Protection.
Geographic Expansion: Introduced Privacy and Identity products into 15 new markets.
Fiscal Year 2026 Revenue Guidance: Guiding fiscal year 2026 revenue to be between $4.7 billion and $4.8 billion, representing 6% to 8% pro forma growth.
Fiscal Year 2026 EPS Guidance: Expecting non-GAAP EPS to be in the range of $2.46 to $2.54 per share, representing double-digit growth of 12% to 15%.
Q1 Fiscal 2026 Revenue Guidance: Expecting non-GAAP revenue in the range of $1.18 billion to $1.21 billion, translating to approximately 5% to 7% pro forma year-over-year growth.
Q1 Fiscal 2026 EPS Guidance: Expecting non-GAAP EPS to be in the range of $0.59 to $0.61, representing double-digit growth of 12% to 15% in constant currency.
Quarterly Dividend: $0.125 per common share for Q1 fiscal 2026, payable on June 11, 2025.
Total Dividends Paid: $950 million since the start of fiscal year 2023.
Share Repurchases: $1.6 billion deployed since the start of fiscal year 2023.
Remaining Buyback Program: $2.7 billion remaining with no expiration date.
The earnings call highlights several positive factors: raised annual revenue guidance, strong customer base growth, and strategic investments in AI and platform development. The Q&A section reveals optimism in revenue synergies and cross-sell opportunities, despite some unclear management responses on seasonality and macro impacts. The company's focus on capital efficiency and shareholder returns, along with a balanced capital allocation strategy, further support a positive outlook. The combination of these factors suggests a likely positive stock price movement in the short term.
The earnings call reflects strong financial performance with record bookings, impressive revenue growth, and operational efficiency, particularly from the MoneyLion acquisition. The guidance is optimistic, with double-digit EPS growth expected. The Q&A section highlights positive trends in MoneyLion's growth and cross-sell opportunities, although some responses were vague. Overall, the strategic moves and financial metrics indicate a positive outlook, likely leading to a stock price increase in the short term.
The earnings call reflects a positive outlook with strong financial performance, including 4% revenue growth and a 15% EPS increase. The acquisition of MoneyLion and strategic expansions in cyber safety and identity offerings contribute to optimism. Although there are integration risks and macroeconomic concerns, the company's resilience and strong cash flow provide stability. The Q&A highlights confidence in durable demand and strategic market approaches. The shareholder return plan, with substantial dividends and share repurchases, further bolsters sentiment. Overall, the comprehensive growth and strategic initiatives suggest a positive stock price movement.
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